Fed sticks to US stimulus reduction

Last updated 08:34 30/01/2014
US Federal Reserve Chairman Ben Bernanke

LAST CALL: US Federal Reserve Chairman Ben Bernanke.

Relevant offers


Thanksgiving advertising can make turkeys out of US brands If women want to reduce the gender pay gap, they have to fight for it Company director hid in wardrobe after crashing her car while drunk Intel employee paid friend to call in bomb threat so he didn’t have to go to work Big brands don't mind live Periscope stumbles to reach millennials NZ banks no exception to sweeping job cuts, branch closures Paris attacks: Europe's weaponmakers set to reap US$50m windfall Commonwealth Bank to pay out A$80m in refunds to customers Hilton hotel group payment systems hit by malware Jeff Bezos' space company's New Shepard landing hailed a breakthrough

The Federal Reserve says it will cut its monthly bond purchases by an additional US$10 billion (NZ$12.1b) to US$65b because of a strengthening US economy.

It's doing so even though the prospect of reduced Fed stimulus and higher US interest rates has rattled global markets.

The Fed also reaffirmed its plan to keep short-term rates at record lows in a statement issued after Ben Bernanke's final policy meeting. Bernanke will step down Friday after eight years as chairman.

Many investors fear that reduced Fed bond buying will boost US rates and cause investors to move money out of emerging markets and into the United States for higher returns. Currency values in emerging nations have fallen. India, Turkey and South Africa have raised rates to try to protect their currencies.

Ad Feedback

- AP

Special offers

Featured Promotions

Sponsored Content